As artificial intelligence (AI) continues to surge across industries, a new challenge is emerging in risk management: AI fatigue. Once hailed as the silver bullet for solving complex workflows, the technology’s rapid adoption and constant hype are leaving professionals skeptical and overwhelmed. This sentiment has been palpable at the many conferences Wisedocs has attended over the past year, including the CLM 2025 Annual Conference, where risk management and insurance leaders echoed a common theme - disillusionment with AI’s overpromised impact and underdelivered outcomes. With adoption rates skyrocketing, the question remains: how can enterprise organizations navigate beyond the buzz to uncover AI’s real value?

The rise and strain of rapid AI adoption

The past two years have seen a remarkable shift in AI usage:

• 77% of insurance professionals now integrate AI into their workflows, up from 61% in 2023.
• 70% of legal professionals report using AI, a dramatic rise from just 19% in 2023.
• According to McKinsey, 50% of claims activities could be replaced by automation by 2030.

Despite these numbers, many professionals are expressing fatigue; not just from the technology itself, but from the uncertainty surrounding its value. The influx of AI tools often lacks clear ROI, and teams are left navigating complex implementations without guaranteed results.

What is fueling the skepticism?

AI fatigue in the risk sector stems from a mix of overhyped promises, lack of transparency, and implementation challenges. Many vendors market their tools as game-changers, but the results often fall short of expectations, delivering only marginal improvements.

The opaque nature of many AI systems adds to the problem. Risk management demands transparency, yet “black box” models offer little visibility into decision-making, making trust and compliance difficult.

On top of that, organizations face tool overload, managing multiple platforms and pilots can fragment workflows and exhaust teams. Unrealistic expectations around quick ROI further compound fatigue, as real value from AI requires time, planning, and phased execution.

Where the true value lies

Despite growing skepticism, genuine progress is happening when AI is applied with precision, purpose, and a clear understanding of its limitations. The key is in targeted use cases that solve real problems, not abstract promises.

Claims Document Review

A Wisedocs-commissioned survey by Property&Casualty360 reveals that 41% of claims professionals now use AI to streamline document-heavy processes. This shift is reducing turnaround times, improving accuracy in claims evaluations, and allowing adjusters to focus on more complex, high-value tasks.

Human-in-the-Loop Models

AI is most effective when paired with expert oversight. Risk management is inherently skeptical, and adding a layer of experts-in-the-loop to AI solutions prove to be the silver bullet many are looking to rely on. Our commissioned survey found that trust in AI jumps from 4x when humans validate the results. This approach ensures that automation doesn’t operate in isolation, but rather benefits from human expertise.

Automation in Repetitive Tasks

When designed to augment rather than replace human judgment, AI excels at handling repetitive, time-consuming tasks like data entry, initial document triage, and basic claims classification. A workers’ compensation legal defense firm recently saw a 150% increase in document processing capacity per business day and a 66% reduction in total document processing time with the implementation of an AI-powered document processing platform, reducing their overall manual workloads. This workflow acceleration can reduce fatigue for professionals, freeing them to concentrate on nuanced evaluations and strategic risk analysis - areas where human insight remains irreplaceable.

From AI fatigue to AI confidence

AI fatigue in risk management is real, but it’s not a sign to abandon innovation. Instead, it’s a cue to recalibrate. By setting realistic expectations, focusing on explainable and verifiable solutions, and keeping human expertise at the center, enterprise organizations can turn AI from a source of skepticism into a trusted tool. The path forward lies not in grand promises, but in practical, measurable progress.
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To determine whether your organization is ready to take the next step, explore our Buyer’s Guide and see how AI-powered claims documentation can work for you.